HOUSE BILL No. 4465
March 6, 1997, Introduced by Reps. Jellema, Middaugh, Middleton, DeVuyst, LaForge, Anthony, Hammerstrom, Martinez, Brater, Byl, McBryde, Voorhees, Ciaramitaro, Baade, Bodem, Raczkowski, Birkholz, Sikkema, Walberg, Jansen, Dalman, Wetters, McNutt, London, Fitzgerald, Kelly, McManus and Perricone and referred to the Committee on Conservation, Environment and Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding part 54. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 PART 54 (SAFE DRINKING WATER ASSISTANCE) 2 SEC. 5401. AS USED IN THIS PART: 3 (A) "ACT 399" MEANS THE SAFE DRINKING WATER ACT, 1976 PA 4 399, MCL 325.101 TO 325.1023. 5 (B) "ANNUAL USER COSTS" MEANS AN ANNUAL CHARGE LEVIED BY A 6 WATER SUPPLIER ON USERS OF THE WATERWORKS SYSTEM TO PAY FOR EACH 7 USER'S SHARE OF THE COST FOR OPERATION, MAINTENANCE, AND REPLACE- 8 MENT OF THE WATERWORKS SYSTEM. THESE COSTS MAY ALSO INCLUDE A 9 CHARGE TO PAY FOR THE DEBT OBLIGATION. 10 (C) "ASSISTANCE" MEANS 1 OR MORE OF THE FOLLOWING ACTIVITIES 11 TO THE EXTENT AUTHORIZED BY THE FEDERAL SAFE DRINKING WATER ACT: 00214'97 * JCB 2 1 (i) PROVISION OF LOANS FOR THE PLANNING, DESIGN, AND 2 CONSTRUCTION OR ALTERATION OF WATERWORKS SYSTEMS. 3 (ii) PROJECT REFINANCING ASSISTANCE. 4 (iii) THE GUARANTEE OR PURCHASE OF INSURANCE FOR LOCAL OBLI- 5 GATIONS, IF THE GUARANTEE OR PURCHASE ACTION WOULD IMPROVE CREDIT 6 MARKET ACCESS OR REDUCE INTEREST RATES. 7 (iv) USE OF THE PROCEEDS OF THE FUND AS A SOURCE OF REVENUE 8 OR SECURITY FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON REVENUE 9 OR GENERAL OBLIGATION BONDS ISSUED BY THIS STATE, IF THE PROCEEDS 10 OF THE SALE OF THE BONDS WILL BE DEPOSITED INTO THE FUND. 11 (v) PROVISION OF LOAN GUARANTEES FOR SUB-STATE REVOLVING 12 FUNDS ESTABLISHED BY WATER SUPPLIERS THAT ARE MUNICIPALITIES. 13 (vi) THE USE OF DEPOSITED FUNDS TO EARN INTEREST ON FUND 14 ACCOUNTS. 15 (vii) PROVISION FOR REASONABLE COSTS OF ADMINISTERING AND 16 CONDUCTING ACTIVITIES UNDER THIS PART. 17 (viii) PROVISION OF TECHNICAL ASSISTANCE UNDER THIS PART. 18 (ix) PROVISION OF LOAN FORGIVENESS FOR CERTAIN PLANNING 19 COSTS INCURRED BY DISADVANTAGED COMMUNITIES. 20 (D) "AUTHORITY" MEANS THE MICHIGAN MUNICIPAL BOND AUTHORITY 21 CREATED IN THE SHARED CREDIT RATING ACT, 1985 PA 227, MCL 22 141.1051 TO 141.1077. 23 (E) "CAPITALIZATION GRANT" MEANS THE FEDERAL GRANT MADE TO 24 THIS STATE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, 25 AS PROVIDED IN THE FEDERAL SAFE DRINKING WATER ACT. 26 (F) "COMMUNITY WATER SUPPLY" MEANS A PUBLIC WATER SUPPLY 27 THAT PROVIDES YEAR-ROUND SERVICE TO NOT LESS THAN 15 LIVING UNITS 00214'97 * 3 1 OR WHICH REGULARLY PROVIDES YEAR-ROUND SERVICE TO NOT LESS THAN 2 25 RESIDENTS. 3 (G) "CONSTRUCTION ACTIVITIES" MEANS ANY ACTIONS UNDERTAKEN 4 IN THE PLANNING, DESIGNING, OR BUILDING OF A WATERWORKS SYSTEM. 5 CONSTRUCTION ACTIVITIES INCLUDE, BUT ARE NOT LIMITED TO, ALL OF 6 THE FOLLOWING: 7 (i) ENGINEERING SERVICES. 8 (ii) LEGAL SERVICES. 9 (iii) FINANCIAL SERVICES. 10 (iv) PREPARATION OF PLANS AND SPECIFICATIONS. 11 (v) ACQUISITION OF LAND OR STRUCTURAL COMPONENTS, OR BOTH, 12 IF THE ACQUISITION IS INTEGRAL TO A PROJECT AUTHORIZED BY THIS 13 PART AND THE PURCHASE IS FROM A WILLING SELLER AT FAIR MARKET 14 VALUE. 15 (vi) BUILDING, ERECTION, ALTERATION, REMODELING, OR EXTEN- 16 SION OF WATERWORKS SYSTEMS, PROVIDING THE EXTENSION IS NOT PRI- 17 MARILY FOR THE ANTICIPATION OF FUTURE POPULATION GROWTH. 18 (vii) REASONABLE EXPENSES OF SUPERVISION OF THE PROJECT 19 ACTIVITIES DESCRIBED IN SUBPARAGRAPHS (i) TO (vi). 20 SEC. 5402. AS USED IN THIS PART: 21 (A) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL QUAL- 22 ITY OR ITS AUTHORIZED AGENT OR REPRESENTATIVE. 23 (B) "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT OF ENVI- 24 RONMENTAL QUALITY OR HIS OR HER DESIGNATED REPRESENTATIVE. 25 (C) "DISADVANTAGED COMMUNITY" MEANS A MUNICIPALITY IN WHICH 26 ALL OF THE FOLLOWING CONDITIONS ARE MET: 00214'97 * 4 1 (i) USERS WITHIN THE AREA SERVED BY A PROPOSED PUBLIC WATER 2 SUPPLY PROJECT ARE DIRECTLY ASSESSED FOR THE COSTS OF 3 CONSTRUCTION. 4 (ii) THE AREA SERVED BY A PROPOSED PUBLIC WATER SUPPLY 5 PROJECT DOES NOT EXCEED 120% OF THE STATEWIDE MEDIAN ANNUAL 6 HOUSEHOLD INCOME FOR MICHIGAN. 7 (iii) THE MUNICIPALITY DEMONSTRATES AT LEAST 1 OF THE 8 FOLLOWING: 9 (A) MORE THAN 50% OF THE AREA SERVED BY A PROPOSED PUBLIC 10 WATER SUPPLY PROJECT IS IDENTIFIED AS A POVERTY AREA BY THE 11 UNITED STATES BUREAU OF THE CENSUS. 12 (B) THE MEDIAN ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY 13 A PROPOSED PUBLIC WATER SUPPLY PROJECT IS LESS THAN THE MOST 14 RECENTLY PUBLISHED FEDERAL POVERTY GUIDELINES FOR A FAMILY OF 4 15 IN THE 48 CONTIGUOUS UNITED STATES. IN DETERMINING THE MEDIAN 16 ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY THE PROPOSED PUBLIC 17 WATER SUPPLY PROJECT UNDER THIS SUBPARAGRAPH, THE MUNICIPALITY 18 SHALL UTILIZE THE MOST RECENTLY PUBLISHED STATISTICS FROM THE 19 UNITED STATES BUREAU OF THE CENSUS, UPDATED TO REFLECT CURRENT 20 DOLLARS, FOR THE COMMUNITY WHICH MOST CLOSELY APPROXIMATES THE 21 AREA BEING SERVED. IF THESE FIGURES ARE NOT AVAILABLE FOR THE 22 AREA SERVED BY THE PROPOSED PUBLIC WATER SUPPLY PROJECT, THE 23 MUNICIPALITY MAY HAVE A SURVEY CONDUCTED TO DOCUMENT THE MEDIAN 24 ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY THE PROJECT. 25 (C) THE MEDIAN ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY 26 A PROPOSED PUBLIC WATER SUPPLY PROJECT IS LESS THAN THE MOST 27 RECENTLY PUBLISHED STATEWIDE MEDIAN ANNUAL HOUSEHOLD INCOME FOR 00214'97 * 5 1 MICHIGAN, AND ANNUAL USER COSTS FOR WATER SUPPLY EXCEED 1.5% OF 2 THE MEDIAN ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY THE PRO- 3 POSED PUBLIC WATER SUPPLY PROJECT. 4 (D) THE MEDIAN ANNUAL HOUSEHOLD INCOME OF THE AREA SERVED BY 5 A PROPOSED PUBLIC WATER SUPPLY PROJECT IS NOT GREATER THAN 120% 6 OF THE STATEWIDE MEDIAN ANNUAL HOUSEHOLD INCOME FOR MICHIGAN, AND 7 ANNUAL USER COSTS FOR WATER SUPPLY EXCEED 3% OF THE MEDIAN ANNUAL 8 HOUSEHOLD INCOME OF THE AREA SERVED BY THE PROPOSED PROJECT. 9 (D) "FEDERAL SAFE DRINKING WATER ACT" MEANS TITLE XIV OF THE 10 PUBLIC HEALTH SERVICE ACT, CHAPTER 373, 88 STAT. 1660, AND THE 11 RULES PROMULGATED UNDER THAT ACT. 12 (E) "FUND" MEANS THE SAFE DRINKING WATER REVOLVING FUND CRE- 13 ATED IN SECTION 16B OF THE SHARED CREDIT RATING ACT, 1985 PA 227, 14 MCL 141.1066B. 15 (F) "FUNDABLE RANGE" MEANS THOSE PROJECTS, TAKEN IN DESCEND- 16 ING ORDER ON THE PRIORITY LIST, FOR WHICH THE DEPARTMENT ESTI- 17 MATES SUFFICIENT FUNDS EXIST TO PROVIDE ASSISTANCE DURING EACH 18 ANNUAL FUNDING CYCLE. 19 (G) "MUNICIPALITY" MEANS A CITY, VILLAGE, COUNTY, TOWNSHIP, 20 AUTHORITY, PUBLIC SCHOOL DISTRICT, OR OTHER PUBLIC BODY WITH 21 TAXING AUTHORITY, INCLUDING AN INTERMUNICIPAL AGENCY OF 2 OR MORE 22 MUNICIPALITIES, AUTHORIZED OR CREATED UNDER STATE LAW. 23 (H) "NONCOMMUNITY WATER SUPPLY" MEANS A PUBLIC WATER SUPPLY 24 THAT IS NOT A COMMUNITY WATER SUPPLY, BUT THAT HAS NOT LESS THAN 25 15 SERVICE CONNECTIONS OR THAT SERVES NOT LESS THAN 25 INDIVIDU- 26 ALS ON AN AVERAGE DAILY BASIS FOR NOT LESS THAN 60 DAYS PER 27 YEAR. 00214'97 * 6 1 SEC. 5403. AS USED IN THIS PART: 2 (A) "PRIORITY LIST" MEANS THE ANNUAL RANKED LISTING OF 3 PROJECTS DEVELOPED BY THE DEPARTMENT IN SECTION 5406. 4 (B) "PROJECT" MEANS A PROJECT RELATED TO THE PLANNING, 5 DESIGN, AND CONSTRUCTION OR ALTERATION OF A WATERWORKS SYSTEM. 6 (C) "PROJECT REFINANCING ASSISTANCE" MEANS BUYING OR REFI- 7 NANCING THE DEBT OBLIGATIONS OF WATER SUPPLIERS IF CONSTRUCTION 8 ACTIVITIES COMMENCED, AND THE DEBT OBLIGATION WAS INCURRED, AFTER 9 THE EFFECTIVE DATE OF THIS PART. 10 (D) "PUBLIC WATER SUPPLY" MEANS A WATERWORKS SYSTEM THAT 11 PROVIDES WATER FOR DRINKING OR HOUSEHOLD PURPOSES TO PERSONS 12 OTHER THAN THE SUPPLIER OF THE WATER, EXCEPT FOR THOSE WATERWORKS 13 SYSTEMS THAT SUPPLY WATER TO ONLY 1 HOUSE, APARTMENT, OR OTHER 14 DOMICILE OCCUPIED OR INTENDED TO BE OCCUPIED ON A DAY-TO-DAY 15 BASIS BY AN INDIVIDUAL, FAMILY GROUP, OR EQUIVALENT. 16 (E) "STATE DRINKING WATER STANDARDS" MEANS RULES PROMULGATED 17 UNDER ACT 399 THAT ESTABLISH WATER QUALITY STANDARDS NECESSARY TO 18 PROTECT PUBLIC HEALTH OR THAT ESTABLISH TREATMENT TECHNIQUES TO 19 MEET THESE WATER QUALITY STANDARDS. 20 (F) "WATER SUPPLIER" OR "SUPPLIER" MEANS A MUNICIPALITY OR 21 ITS DESIGNATED REPRESENTATIVE ACCEPTED BY THE DIRECTOR, A LEGAL 22 BUSINESS ENTITY, OR ANY OTHER PERSON WHO OWNS A PUBLIC WATER 23 SUPPLY. HOWEVER, WATER SUPPLIER DOES NOT INCLUDE A WATER 24 HAULER. 25 (G) "WATERWORKS SYSTEM" OR "SYSTEM" MEANS A SYSTEM OF PIPES 26 AND STRUCTURES THROUGH WHICH WATER IS OBTAINED OR DISTRIBUTED AND 27 INCLUDES ANY OF THE FOLLOWING THAT ARE ACTUALLY USED OR INTENDED 00214'97 * 7 1 TO BE USED FOR THE PURPOSE OF FURNISHING WATER FOR DRINKING OR 2 HOUSEHOLD PURPOSES: 3 (i) WELLS AND WELL STRUCTURES. 4 (ii) INTAKES AND CRIBS. 5 (iii) PUMPING STATIONS. 6 (iv) TREATMENT PLANTS. 7 (v) STORAGE TANKS. 8 (vi) PIPELINES AND APPURTENANCES. 9 (vii) A COMBINATION OF ANY OF THE ITEMS SPECIFIED IN THIS 10 SUBDIVISION. 11 SEC. 5404. (1) WATER SUPPLIERS OWNING THE FOLLOWING TYPES 12 OF PUBLIC WATER SUPPLIES QUALIFY TO RECEIVE ASSISTANCE UNDER THIS 13 PART: 14 (A) A COMMUNITY WATERSUPPLY. 15 (B) A NONCOMMUNITY WATERSUPPLY THAT OPERATES AS A NONPROFIT 16 ENTITY. 17 (2) WATER SUPPLIERS IDENTIFIED IN SUBSECTION (1) THAT SERVE 18 10,000 PEOPLE OR LESS MAY QUALIFY FOR ASSISTANCE FROM FUNDS PRE- 19 SCRIBED IN SECTION 1452(A)(2) OF PART 6 OF THE FEDERAL SAFE 20 DRINKING WATER ACT, 42 U.S.C. 300j-12. 21 (3) PROJECT PLANNING COSTS ARE ELIGIBLE FOR FUNDING UNDER 22 THIS PART AND WILL BE REIMBURSED BY THE DEPARTMENT AS FOLLOWS: 23 (A) FOR A MUNICIPALITY SERVING GREATER THAN 10,000 PEOPLE, 24 INCURRED PLANNING COSTS RELATED TO THE PROPOSED PROJECT MAY BE 25 REIMBURSED AS PART OF THE CONSTRUCTION LOAN APPROVED BY THE 26 MICHIGAN MUNICIPAL BOND AUTHORITY. THESE COSTS SHALL BE REPAID 00214'97 * 8 1 AS PART OF THE OUTSTANDING CONSTRUCTION LOAN PROCEEDS ACCORDING 2 TO A SCHEDULE ESTABLISHED BY THE AUTHORITY. 3 (B) FOR A MUNICIPALITY SERVING LESS THAN 10,000 PEOPLE, 4 INCURRED PLANNING COSTS RELATED TO THE PROPOSED PROJECT WILL BE 5 DIRECTLY REIMBURSED BY THE DEPARTMENT UPON COMPLETION AND SUBMIT- 6 TAL OF AN APPROVABLE PROJECT PLAN BY THE MUNICIPALITY TO THE 7 DEPARTMENT. THESE COSTS SHALL BE REPAID AS PART OF THE OUTSTAND- 8 ING PLANNING LOAN PROCEEDS ACCORDING TO A SCHEDULE ESTABLISHED BY 9 THE AUTHORITY. 10 (C) FOR DISADVANTAGED COMMUNITIES, INCURRED PLANNING COSTS 11 RELATED TO THE PROPOSED PROJECT SHALL BE DIRECTLY REIMBURSED TO 12 THE EXTENT FUNDS ARE AVAILABLE BY THE DEPARTMENT UPON COMPLETION 13 AND SUBMITTAL OF AN APPROVABLE PROJECT PLAN BY THE MUNICIPALITY 14 TO THE DEPARTMENT. TECHNICAL ASSISTANCE FUNDS IDENTIFIED IN SEC- 15 TION 1452(G)(2)(D) OR SECTION 1452(D)(1) OF PART E OF THE FEDERAL 16 SAFE DRINKING WATER ACT, 42 U.S.C. 300j-12, SHALL BE USED TO THE 17 EXTENT AVAILABLE, TO FORGIVE REPAYMENT OF THE PLANNING LOAN. 18 (4) ONLY WATER SUPPLIERS THAT HAVE NO OUTSTANDING PRIOR YEAR 19 FEES AS PRESCRIBED IN ACT 399 MAY RECEIVE ASSISTANCE UNDER THIS 20 PART. 21 (5) A FEDERAL, STATE, OR OTHER WATER SUPPLIER THAT IS NOT 22 REGULATED BY THE DEPARTMENT SHALL NOT RECEIVE ASSISTANCE UNDER 23 THIS PART. 24 SEC. 5405. (1) A WATER SUPPLIER WHO IS INTERESTED IN APPLY- 25 ING FOR ASSISTANCE UNDER THIS PART SHALL PREPARE AND SUBMIT TO 26 THE DEPARTMENT A PROJECT PLAN AS PROVIDED IN THIS SECTION. THE 27 DEPARTMENT SHALL USE PROJECT PLANS SUBMITTED UNDER THIS SECTION 00214'97 * 9 1 TO DEVELOP A PRIORITY LIST FOR ASSISTANCE AS PROVIDED UNDER THIS 2 PART. 3 (2) DURING THE DEVELOPMENT OF A PROJECT PLAN, A WATER SUP- 4 PLIER THAT IS A MUNICIPALITY SHALL CONSIDER AND UTILIZE, WHERE 5 PRACTICABLE, COOPERATIVE REGIONAL OR INTERMUNICIPAL PROJECTS, AND 6 A WATER SUPPLIER THAT IS NOT A MUNICIPALITY SHALL CONSIDER AND 7 UTILIZE, WHERE PRACTICABLE, CONNECTION TO, OR OWNERSHIP BY, A 8 WATER SUPPLIER THAT IS A MUNICIPALITY. 9 (3) THE PROJECT PLAN FOR A PROJECT SHALL INCLUDE DOCUMEN- 10 TATION THAT DEMONSTRATES THAT THE PROJECT IS NEEDED TO ASSURE 11 MAINTENANCE OF, OR PROGRESS TOWARD, COMPLIANCE WITH THE FEDERAL 12 SAFE DRINKING WATER ACT. A COMPLETE PROJECT PLAN SHALL INCLUDE 13 ALL OF THE FOLLOWING AS BACKGROUND: 14 (A) IDENTIFICATION OF PLANNING AREA BOUNDARIES AND 15 CHARACTERISTICS. 16 (B) A DESCRIPTION OF THE EXISTING WATERWORKS SYSTEMS. 17 (C) A DESCRIPTION OF THE EXISTING WATERWORKS PROBLEMS AND 18 NEEDS, INCLUDING THE SEVERITY AND EXTENT OF WATER SUPPLY PROBLEMS 19 OR PUBLIC HEALTH PROBLEMS. 20 (D) AN EXAMINATION OF PROJECTED NEEDS FOR THE NEXT 20 21 YEARS. 22 (E) POPULATION PROJECTIONS AND THE SOURCE AND BASIS FOR THE 23 POPULATION PROJECTIONS. 24 (4) A PROJECT PLAN SHALL INCLUDE AN ANALYSIS OF ALTERNA- 25 TIVES, WHICH SHALL CONSIST OF A SYSTEMATIC IDENTIFICATION, 26 SCREENING, STUDY, EVALUATION, AND COST-EFFECTIVENESS COMPARISON 27 OF FEASIBLE TECHNOLOGIES, PROCESSES, AND TECHNIQUES. THE 00214'97 * 10 1 ALTERNATIVES SHALL BE CAPABLE OF MEETING THE APPLICABLE STATE 2 DRINKING WATER STANDARDS OVER THE DESIGN LIFE OF THE FACILITY, 3 WHILE RECOGNIZING ENVIRONMENTAL AND OTHER NONMONETARY 4 CONSIDERATIONS. THE ANALYSIS SHALL INCLUDE, BUT NOT BE LIMITED 5 TO, ALL OF THE FOLLOWING: 6 (A) A PLANNING PERIOD FOR THE COST-EFFECTIVENESS ANALYSIS OF 7 20 YEARS OR OTHER SUCH PLANNING PERIOD AS IS JUSTIFIED BY THE 8 UNIQUE CHARACTERISTICS OF THE PROJECT. 9 (B) MONETARY COSTS THAT CONSIDER THE PRESENT WORTH OR EQUIV- 10 ALENT ANNUAL VALUE OF ALL CAPITAL COSTS AND OPERATION AND MAINTE- 11 NANCE COSTS. 12 (C) PROVISIONS FOR THE ULTIMATE DISPOSAL OF RESIDUALS AND 13 SLUDGE RESULTING FROM DRINKING WATER TREATMENT PROCESSES. 14 (D) A SYNOPSIS OF THE ENVIRONMENTAL SETTING OF THE PROJECT 15 AND AN ANALYSIS OF THE POTENTIAL ENVIRONMENTAL AND PUBLIC HEALTH 16 IMPACTS OF THE VARIOUS ALTERNATIVES, AS WELL AS THE IDENTIFICA- 17 TION OF ANY SIGNIFICANT ENVIRONMENTAL OR PUBLIC HEALTH BENEFITS 18 PRECLUDED BY REJECTION OF AN ALTERNATIVE. 19 (E) CONSIDERATION OF OPPORTUNITIES TO MAKE MORE EFFICIENT 20 USE OF ENERGY AND RESOURCES. 21 (F) A DESCRIPTION OF THE RELATIONSHIP BETWEEN THE SERVICE 22 CAPACITY OF EACH WATERWORKS SYSTEMS ALTERNATIVE AND THE ESTIMATED 23 FUTURE NEEDS USING POPULATION PROJECTIONS UNDER 24 SUBSECTION (3)(E). 25 (5) A PROJECT PLAN SHALL INCLUDE A DESCRIPTION OF THE 26 SELECTED ALTERNATIVE, INCLUDING ALL OF THE FOLLOWING: 00214'97 * 11 1 (A) RELEVANT DESIGN PARAMETERS. 2 (B) ESTIMATED CAPITAL CONSTRUCTION COSTS, OPERATION AND 3 MAINTENANCE COSTS, AND A DESCRIPTION OF THE MANNER IN WHICH 4 PROJECT COSTS WILL BE FINANCED. 5 (C) A DEMONSTRATION OF THE WATER SUPPLIER'S ABILITY TO REPAY 6 THE INCURRED DEBT, INCLUDING AN ANALYSIS OF THE IMPACTS OF THE 7 ANNUAL USER COSTS FOR WATER SUPPLY ON ITS USERS. 8 (D) A DEMONSTRATION THAT THE SELECTED ALTERNATIVE IS IMPLE- 9 MENTABLE CONSIDERING THE LEGAL, INSTITUTIONAL, TECHNICAL, FINAN- 10 CIAL, AND MANAGERIAL RESOURCES OF THE WATER SUPPLIER. 11 (E) ASSURANCE THAT THERE IS SUFFICIENT WATERWORKS SYSTEM 12 SERVICE CAPACITY FOR THE SERVICE AREA BASED ON PROJECTED NEEDS 13 IDENTIFIED IN SUBDIVISION (D) WHILE AVOIDING THE USE OF FUNDS 14 AVAILABLE UNDER THIS PART TO FINANCE THE EXPANSION OF ANY PUBLIC 15 WATER SYSTEM PROPOSED PRIMARILY IN ANTICIPATION OF FUTURE POPULA- 16 TION GROWTH. 17 (F) DOCUMENTATION OF THE PROJECT'S CONSISTENCY WITH THE 18 APPROVED GENERAL PLAN PREPARED PURSUANT TO SECTION 4 OF ACT 399, 19 MCL 325.1004. 20 (G) AN ANALYSIS OF THE ENVIRONMENTAL AND PUBLIC HEALTH 21 IMPACTS OF THE SELECTED ALTERNATIVE. 22 (H) CONSIDERATION OF STRUCTURAL AND NONSTRUCTURAL MEASURES 23 THAT COULD BE TAKEN TO MITIGATE OR ELIMINATE ADVERSE EFFECTS ON 24 THE ENVIRONMENT. 25 (6) A PROJECT PLAN SHALL DESCRIBE THE PUBLIC PARTICIPATION 26 ACTIVITIES CONDUCTED DURING PLANNING AND SHALL INCLUDE ALL OF THE 27 FOLLOWING: 00214'97 * 12 1 (A) SIGNIFICANT ISSUES RAISED BY THE PUBLIC AND ANY CHANGES 2 TO THE PROJECT THAT WERE MADE AS A RESULT OF THE PUBLIC PARTICI- 3 PATION PROCESS. 4 (B) A DEMONSTRATION THAT THERE WERE ADEQUATE OPPORTUNITIES 5 FOR PUBLIC CONSULTATION, PARTICIPATION, AND INPUT IN THE 6 DECISION-MAKING PROCESS DURING ALTERNATIVE SELECTION. 7 (C) A DEMONSTRATION THAT BEFORE THE ADOPTION OF THE PROJECT 8 PLAN, THE WATER SUPPLIER HELD A PUBLIC HEARING ON THE PROPOSED 9 PROJECT NOT LESS THAN 30 DAYS AFTER ADVERTISING IN LOCAL MEDIA OF 10 GENERAL CIRCULATION AND AT A TIME AND PLACE CONDUCIVE TO MAXIMIZ- 11 ING PUBLIC INPUT. 12 (D) A DEMONSTRATION THAT, CONCURRENT WITH ADVERTISEMENT OF 13 THE HEARING, A NOTICE OF PUBLIC HEARING WAS SENT TO ALL AFFECTED 14 LOCAL, STATE, AND FEDERAL AGENCIES AND TO ANY PUBLIC OR PRIVATE 15 PARTIES THAT HAVE EXPRESSED AN INTEREST IN THE PROPOSED PROJECT. 16 (E) A TRANSCRIPT OR RECORDING OF THE HEARING, A LIST OF ALL 17 ATTENDEES, ANY WRITTEN TESTIMONY RECEIVED, AND THE WATER 18 SUPPLIER'S RESPONSES TO THE ISSUES RAISED. 19 (7) A PROJECT PLAN SHALL INCLUDE EITHER OF THE FOLLOWING, AS 20 APPROPRIATE: 21 (A) FOR A WATER SUPPLIER THAT IS A MUNICIPALITY, A RESOLU- 22 TION ADOPTED BY THE GOVERNING BOARD OF THE MUNICIPALITY APPROVING 23 THE PROJECT PLAN. 24 (B) FOR A WATER SUPPLIER THAT IS NOT A MUNICIPALITY, A 25 STATEMENT OF INTENT TO IMPLEMENT THE PROJECT PLAN. 26 SEC. 5406. (1) THE DEPARTMENT SHALL ANNUALLY DEVELOP A 27 PRIORITY LIST OF PROJECTS ELIGIBLE FOR ASSISTANCE UNDER THIS 00214'97 * 13 1 PART. PROJECTS THAT ARE NOT FUNDED DURING THE YEAR THAT A 2 PRIORITY LIST DEVELOPED UNDER THIS SECTION IS IN EFFECT SHALL BE 3 AUTOMATICALLY PRIORITIZED ON THE NEXT ANNUAL LIST USING THE SAME 4 CRITERIA, UNLESS THE WATER SUPPLIER SUBMITS AN AMENDMENT TO ITS 5 PROJECT PLAN THAT INTRODUCES NEW INFORMATION TO BE USED AS THE 6 BASIS FOR PRIORITIZATION. THE PRIORITY LIST SHALL BE BASED ON 7 PROJECT PLANS SUBMITTED BY WATER SUPPLIERS UNDER SECTION 5405 AND 8 THE CRITERIA LISTED IN SUBDIVISIONS (A) THROUGH (F). EACH 9 PROJECT SHALL BE ASSIGNED POINTS UP TO A MAXIMUM OF 1,000. THE 10 POINT VALUES ARE MAXIMUM VALUES AVAILABLE FOR EACH CATEGORY OR 11 SUBCATEGORY LISTED IN THIS SECTION AND SHALL ONLY BE AWARDED IF 12 THE PROJECT SUBSTANTIALLY ADDRESSES THE PROBLEM FOR WHICH THE 13 POINT AWARD IS GIVEN. IF A PROJECT IS PRIMARILY DESIGNED TO 14 REPLACE INDIVIDUAL WELLS AT PRIVATE HOMES, 50% OR MORE OF THE 15 HOMES IN THE AFFECTED AREA SHALL MEET EQUIVALENT WATER QUALITY OR 16 INFRASTRUCTURE DEFICIENCY CRITERIA LISTED IN SUBDIVISIONS (A) 17 THROUGH (F) IN ORDER TO RECEIVE THE MAXIMUM AVAILABLE POINTS. IF 18 LESS THAN 50% OF THE HOMES IN THE AFFECTED AREA CAN DEMONSTRATE 19 DEFICIENCIES, 1/2 OF THE TOTAL POINTS AVAILABLE SHALL BE 20 AWARDED. POINTS SHALL BE AWARDED AS FOLLOWS: 21 (A) A MAXIMUM OF 450 POINTS MAY BE AWARDED TO A PROJECT THAT 22 ADDRESSES DRINKING WATER QUALITY AS OUTLINED IN ACT 399, IF THE 23 PROJECT: 24 (i) IS DESIGNED TO ELIMINATE AN ACUTE VIOLATION OF A DRINK- 25 ING WATER STANDARD AS DEFINED IN PART 4 OF THE ADMINISTRATIVE 26 RULES FOR ACT 399. A VIOLATION OF A SURFACE WATER TREATMENT 00214'97 * 14 1 TECHNIQUE, OR IF A WATERBORNE DISEASE OUTBREAK HAS BEEN 2 DOCUMENTED, 250 POINTS SHALL BE AWARDED FOR EACH VIOLATION. 3 (ii) IS DESIGNED TO ELIMINATE A VIOLATION OF A DRINKING 4 WATER STANDARD OTHER THAN THOSE OUTLINED IN SUBPARAGRAPH (i), 200 5 POINTS SHALL BE AWARDED FOR EACH VIOLATION. 6 (iii) IS DESIGNED TO UPGRADE A FACILITY TO MAINTAIN COMPLI- 7 ANCE WITH DRINKING WATER STANDARDS OR SYSTEM CAPACITY REQUIRE- 8 MENTS, 150 POINTS SHALL BE AWARDED. 9 (iv) IS DESIGNED TO ELIMINATE AN EXCEEDANCE OF A SECONDARY 10 MAXIMUM CONTAMINANT LEVEL FOR AESTHETIC WATER QUALITY, 25 POINTS 11 SHALL BE AWARDED. 12 (B) A MAXIMUM OF 350 POINTS MAY BE AWARDED TO A PROJECT THAT 13 ADDRESSES INFRATRUCTURE IMPROVEMENTS, AS FOLLOWS: 14 (i) IF SOURCE OR TREATMENT FACILITIES ARE UPGRADED, INCLUD- 15 ING THE WATERMAINS TO CONNECT TO THE DISTRIBUTION SYSTEM, A MAXI- 16 MUM OF 125 POINTS SHALL BE AWARDED, IF THE IMPROVEMENT IS: 17 (A) TO MEET MINIMUM CAPACITY REQUIREMENTS, 100 POINTS SHALL 18 BE AWARDED. 19 (B) FOR RELIABILITY, 75 POINTS SHALL BE AWARDED. 20 (C) FOR OTHER SOURCE OR TREATMENT FACILITY UPGRADES NOT 21 INCLUDED IN SUBPARAGRAPH (i)(A) OR (B), 25 POINTS SHALL BE 22 AWARDED. 23 (D) TO SATISFY THE CONDITIONS OF A FORMAL ENFORCEMENT 24 ACTION, 25 POINTS SHALL BE AWARDED. 25 (E) FOR SOURCE WATER PROTECTION, 50 POINTS SHALL BE 26 AWARDED. 00214'97 * 15 1 (ii) IF TRANSMISSION OR DISTRIBUTION WATERMAINS ARE 2 UPGRADED, A MAXIMUM OF 125 POINTS SHALL BE AWARDED, IF THE 3 IMPROVEMENT IS: 4 (A) TO MEET MINIMUM CAPACITY WHERE FLOW OR RESIDUAL PRESSURE 5 IS LESS THAN ACCEPTABLE, 100 POINTS SHALL BE AWARDED. 6 (B) FOR RELIABILITY, INCLUDING LOOPING OR REDUNDANT FEEDS, 7 75 POINTS SHALL BE AWARDED. 8 (C) OTHER TRANSMISSION OR DISTRIBUTION SYSTEM UPGRADES NOT 9 INCLUDED IN SUBPARAGRAPH (ii)(A) OR (B), 25 POINTS SHALL BE 10 AWARDED. 11 (D) TO SATISFY THE CONDITIONS OF A FORMAL ENFORCEMENT 12 ACTION, 25 POINTS SHALL BE AWARDED. 13 (iii) IF WATER STORAGE FACILITIES OR PUMPING STATIONS ARE 14 UPGRADED, A MAXIMUM OF 125 POINTS SHALL BE AWARDED, IF THE 15 IMPROVEMENT IS: 16 (A) TO MEET MINIMUM CAPACITY WHERE STORAGE OR PUMPING CAPAC- 17 ITY IS LESS THAN MINIMUM REQUIREMENTS, 100 POINTS SHALL BE 18 AWARDED. 19 (B) FOR RELIABILITY, 75 POINTS SHALL BE AWARDED. 20 (C) OTHER STORAGE FACILITY OR PUMPING STATION UPGRADES NOT 21 INCLUDED IN SUBPARAGRAPH (iii)(A) OR (B), 25 POINTS SHALL BE 22 AWARDED. 23 (D) TO SATISFY THE CONDITIONS OF A FORMAL ENFORCEMENT 24 ACTION, 25 POINTS SHALL BE AWARDED. 25 (C) A MAXIMUM OF 50 POINTS SHALL BE AWARDED BASED ON THE 26 POPULATION SERVED BY THE WATER SYSTEM ACCORDING TO THE FOLLOWING 27 TABLE. HOWEVER, A TRANSIENT NONCOMMUNITY WATER SUPPLY AS DEFINED 00214'97 * 16 1 IN SECTION 2 OF ACT 399 IS ELIGIBLE FOR 1/2 OF THE POINT VALUE 2 LISTED IN THE FOLLOWING TABLE: 3 POPULATION POINTS 4 >50,000 50 5 10,001 - 50,000 40 6 3,301 - 10,000 30 7 501 - 3,300 20 8 0 - 500 10 9 (D) A MAXIMUM OF 50 POINTS SHALL BE AWARDED TO A COMMUNITY 10 WATER SUPPLY THAT IS A DISADVANTAGED COMMUNITY. 11 (E) A MAXIMUM OF 100 POINTS SHALL BE AWARDED FOR PROJECTS 12 THAT INCLUDE CONSOLIDATION AS FOLLOWS: 13 (i) IF 1 OR MORE PUBLIC WATER SUPPLIES ARE BROUGHT INTO COM- 14 PLIANCE WITH STATE DRINKING WATER STANDARDS AS A RESULT OF CON- 15 SOLIDATION, 100 POINTS SHALL BE AWARDED. 16 (ii) IF DEFICIENCIES, WHICH ARE DOCUMENTED IN WRITING BY THE 17 DEPARTMENT, AT 1 OR MORE PUBLIC WATER SUPPLIES ARE CORRECTED AS A 18 RESULT OF CONSOLIDATION, 60 POINTS SHALL BE AWARDED. 19 (iii) OTHER CONSOLIDATIONS, NOT INCLUDED UNDER 20 SUBPARAGRAPH (i) OR (ii), SHALL BE AWARDED 40 POINTS. 00214'97 * 17 1 (F) AFTER SCORING, USING THE CRITERIA IN SUBDIVISIONS (A) 2 THROUGH (E), IF 2 OR MORE PROJECTS HAVE THE SAME SCORE, THE 3 FOLLOWING TIE-BREAKER SHALL BE APPLIED: 4 (i) IF THE SYSTEM HAS FEWER THAN 2 VIOLATIONS OF THE MONI- 5 TORING, RECORD-KEEPING, AND REPORTING REQUIREMENTS OF ACT 399 IN 6 THE PREVIOUS 2-YEAR REPORTING PERIOD, OR NO VIOLATIONS IF OWNER- 7 SHIP OF THE SYSTEM HAS CHANGED IN THE PREVIOUS 2 YEARS, IT SHALL 8 RANK ABOVE SYSTEMS HAVING MORE VIOLATIONS. 9 (ii) AFTER APPLYING THE TIE-BREAKER IN SUBPARAGRAPH (i), IF 10 2 OR MORE PROJECTS SCORE EXACTLY THE SAME, A CALCULATION OF THE 11 COST PER POPULATION SERVED BY THE WATER SYSTEM SHALL BE MADE. 12 THE AFFECTED PROJECTS SHALL BE RANKED WITH THE LOWEST RATIO OF 13 COST TO POPULATION RANKED HIGHER. 14 (2) THE PRIORITY LIST SHALL BE SUBMITTED ANNUALLY TO THE 15 CHAIRPERSONS OF THE SENATE AND HOUSE OF REPRESENTATIVES STANDING 16 COMMITTEES THAT PRIMARILY CONSIDER LEGISLATION PERTAINING TO THE 17 PROTECTION OF PUBLIC HEALTH AND THE ENVIRONMENT. 18 (3) IN PREPARING THE PRIORITY LIST, TO ENSURE THAT A DISPRO- 19 PORTIONATE SHARE OF AVAILABLE FUNDS FOR A GIVEN FISCAL YEAR IS 20 NOT COMMITTED TO A SINGLE WATER SUPPLY PROJECT, THE DEPARTMENT 21 MAY SEGMENT A PROJECT IF EITHER OF THE FOLLOWING CRITERIA IS 22 PRESENT: 23 (A) THE COST OF THE PROPOSED PROJECT IS MORE THAN 30% OF THE 24 TOTAL AMOUNT AVAILABLE IN THE FUND DURING THE FISCAL YEAR. 25 (B) THE DEPARTMENT HAS APPROVED A WATER SUPPLIER'S APPLICA- 26 TION FOR SEGMENTING A PROJECT. 00214'97 * 18 1 (4) SEGMENTS OF A PROJECT THAT HAS BEEN SEGMENTED UNDER 2 SUBSECTION (3) SHALL BE ASSIGNED PRIORITY POINTS BASED ON THE 3 PROJECT AS IDENTIFIED IN THE PROJECT PLAN. AFTER FUNDING ASSIST- 4 ANCE FOR THE FIRST SEGMENT IS ACCEPTED, THE REMAINING SEGMENTS 5 WILL RETAIN FIRST PRIORITY FOR FUNDING ASSISTANCE ON THE NEXT 3 6 FISCAL YEAR PRIORITY LISTS. ALL PROJECTS WITH PREVIOUSLY FUNDED 7 SEGMENTS WILL BE DESIGNATED WITH FIRST PRIORITY. RANKING ORDER 8 FOR THESE PROJECTS TO RECEIVE FUNDING ASSISTANCE WILL BE SUBJECT 9 TO THE RELATIVE RANKING OF ALL FIRST SEGMENT PROJECTS. 10 (5) IN PREPARING THE INTENDED USE PLAN, THE DEPARTMENT SHALL 11 MAKE EVERY EFFORT TO ASSURE THAT FUNDING FOR ASSISTANCE IS EQUI- 12 TABLY DISTRIBUTED AMONG PUBLIC WATER SUPPLIES OF VARYING SIZES. 13 (6) FOR PURPOSES OF PROVIDING ASSISTANCE, THE PRIORITY LIST 14 SHALL TAKE EFFECT ON THE FIRST DAY OF EACH FISCAL YEAR. 15 SEC. 5407. THE DEPARTMENT SHALL ANNUALLY IDENTIFY THOSE 16 PROJECTS IN THE FUNDABLE RANGE OF THE PRIORITY LIST. FOLLOWING 17 THE IDENTIFICATION OF PROJECTS IN THE FUNDABLE RANGE, THE DEPART- 18 MENT SHALL REVIEW, GENERALLY IN PRIORITY ORDER, THE PROJECT PLANS 19 FOR THESE PROJECTS AND, FOLLOWING COMPLETION OF THE ENVIRONMENTAL 20 REVIEW PROCESS DESCRIBED IN SECTION 5408, EITHER APPROVE OR DIS- 21 APPROVE THE PROJECT PLANS. 22 SEC. 5408. (1) THE DEPARTMENT SHALL CONDUCT AN ENVIRONMEN- 23 TAL REVIEW OF THE PROJECT PLAN OF EACH PROJECT IN THE FUNDABLE 24 RANGE OF THE PRIORITY LIST TO DETERMINE WHETHER ANY SIGNIFICANT 25 IMPACTS ARE ANTICIPATED AND WHETHER ANY CHANGES CAN BE MADE IN 26 THE PROJECT TO ELIMINATE SIGNIFICANT ADVERSE IMPACTS. AS PART OF 27 THIS REVIEW, THE DEPARTMENT MAY REQUIRE THE SUBMITTAL OF 00214'97 * 19 1 ADDITIONAL INFORMATION OR ADDITIONAL PUBLIC PARTICIPATION AND 2 COORDINATION TO JUSTIFY THE ENVIRONMENTAL DETERMINATION. 3 (2) BASED ON THE ENVIRONMENTAL REVIEW UNDER SUBSECTION (1), 4 THE DEPARTMENT MAY ISSUE A CATEGORICAL EXCLUSION FOR CATEGORIES 5 OF ACTIONS THAT DO NOT INDIVIDUALLY, CUMULATIVELY OVER TIME OR IN 6 CONJUNCTION WITH OTHER FEDERAL, STATE, LOCAL, OR PRIVATE ACTIONS 7 HAVE A SIGNIFICANT ADVERSE EFFECT ON THE QUALITY OF THE HUMAN 8 ENVIRONMENT OR PUBLIC HEALTH. ADDITIONAL ENVIRONMENTAL INFORMA- 9 TION DOCUMENTATION, ENVIRONMENTAL ASSESSMENTS, AND ENVIRONMENTAL 10 IMPACT STATEMENTS WILL NOT BE REQUIRED FOR EXCLUDED ACTIONS. 11 (3) FOLLOWING RECEIPT OF THE PROJECT PLAN, THE DIRECTOR 12 SHALL DETERMINE IF THE PROPOSED PUBLIC WATER SUPPLY PROJECT QUAL- 13 IFIES FOR A CATEGORICAL EXCLUSION AND DOCUMENT THE DECISION. 14 (4) THE DIRECTOR MAY REVOKE A CATEGORICAL EXCLUSION AND 15 REQUIRE A COMPLETE ENVIRONMENTAL REVIEW IF, SUBSEQUENT TO THE 16 DETERMINATION, THE DIRECTOR FINDS ANY OF THE FOLLOWING: 17 (A) THE PROPOSED PUBLIC WATER SUPPLY PROJECT NO LONGER QUAL- 18 IFIES FOR A CATEGORICAL EXCLUSION DUE TO CHANGES IN THE PROPOSED 19 PLAN. 20 (B) NEW EVIDENCE EXISTS DOCUMENTING A SERIOUS HEALTH OR 21 ENVIRONMENTAL ISSUE. 22 (C) FEDERAL, STATE, LOCAL, OR TRIBAL LAWS WILL BE VIOLATED 23 BY THE PROPOSED PUBLIC WATER SUPPLY PROJECT. 24 (5) THE PROPOSED PROJECT SHALL NOT QUALIFY FOR A CATEGORICAL 25 EXCLUSION IF THE DIRECTOR DETERMINES ANY OF THE FOLLOWING CRI- 26 TERIA ARE APPLICABLE: 00214'97 * 20 1 (A) THE PROPOSED FACILITIES RESULT IN AN INCREASE IN 2 RESIDUALS AND SLUDGE GENERATED BY DRINKING WATER PROCESSES, 3 EITHER VOLUME OR TYPE, WHICH WOULD NEGATIVELY IMPACT THE PER- 4 FORMANCE OF THE WATERWORKS SYSTEM OR THE DISPOSAL METHODS, OR 5 WOULD THREATEN AN AQUIFER RECHARGE ZONE. 6 (B) THE PROPOSED FACILITIES WOULD PROVIDE SERVICE TO A POPU- 7 LATION GREATER THAN 30% OF THE EXISTING POPULATION, UNLESS POPU- 8 LATION PROJECTIONS REQUIRED IN SECTION 5405(3)(E) SUPPORT 9 PROJECTED NEEDS. 10 (C) THE PROPOSED PUBLIC WATER SUPPLY PROJECT IS KNOWN, OR 11 EXPECTED, TO DIRECTLY OR INDIRECTLY AFFECT CULTURAL AREAS, FAUNA 12 OR FLORA HABITATS, ENDANGERED OR THREATENED SPECIES, OR ENVIRON- 13 MENTALLY IMPORTANT NATURAL RESOURCE AREAS. 14 (D) THE PROPOSED PUBLIC WATER SUPPLY PROJECT DIRECTLY OR 15 INDIRECTLY INVOLVES THE EXTENSION OF TRANSMISSION SYSTEMS TO NEW 16 SERVICE AREAS. 17 (E) THE PROPOSED PUBLIC WATER SUPPLY PROJECT HAS BEEN SHOWN 18 NOT TO BE THE COST-EFFECTIVE ALTERNATIVE. 19 (F) THE PROPOSED PUBLIC WATER SUPPLY PROJECT WILL CAUSE SIG- 20 NIFICANT PUBLIC CONTROVERSY. 21 (6) IF, BASED ON THE ENVIRONMENTAL REVIEW UNDER SUBSECTION 22 (1), THE DEPARTMENT DETERMINES THAT AN ENVIRONMENTAL ASSESSMENT 23 IS NECESSARY, THE DEPARTMENT MAY DESCRIBE THE FOLLOWING: 24 (A) THE PURPOSE AND NEED FOR THE PROJECT. 25 (B) THE PROJECT, INCLUDING ITS COSTS. 26 (C) THE ALTERNATIVES CONSIDERED AND THE REASONS FOR THEIR 27 ACCEPTANCE OR REJECTION. 00214'97 * 21 1 (D) THE EXISTING ENVIRONMENT. 2 (E) ANY POTENTIAL ADVERSE IMPACTS AND MITIGATIVE MEASURES. 3 (F) HOW MITIGATIVE MEASURES WILL BE INCORPORATED INTO THE 4 PROJECT, AS WELL AS ANY PROPOSED CONDITIONS OF FINANCIAL ASSIST- 5 ANCE AND THE MEANS FOR MONITORING COMPLIANCE WITH THE 6 CONDITIONS. 7 (7) THE DEPARTMENT MAY ISSUE A FINDING OF NO SIGNIFICANT 8 IMPACT, BASED UPON AN ENVIRONMENTAL ASSESSMENT WHICH DOCUMENTS 9 THAT POTENTIAL ENVIRONMENTAL IMPACTS WILL NOT BE SIGNIFICANT OR 10 THAT THEY MAY BE MITIGATED WITHOUT EXTRAORDINARY MEASURES. 11 (8) AN ENVIRONMENTAL IMPACT STATEMENT MAY BE REQUIRED WHEN 12 THE DEPARTMENT DETERMINES ANY OF THE FOLLOWING: 13 (A) THE PROJECT WILL HAVE A SIGNIFICANT IMPACT ON THE PAT- 14 TERN AND TYPE OF LAND USE OR THE GROWTH AND DISTRIBUTION OF THE 15 POPULATION. 16 (B) THE EFFECTS OF THE PROJECT'S CONSTRUCTION OR OPERATION 17 WILL CONFLICT WITH LOCAL OR STATE LAWS OR POLICIES. 18 (C) THE PROJECT WILL HAVE SIGNIFICANT ADVERSE IMPACTS ON ANY 19 OF THE FOLLOWING: 20 (i) WETLANDS. 21 (ii) FLOOD PLAINS. 22 (iii) THREATENED OR ENDANGERED SPECIES OR HABITATS. 23 (iv) CULTURAL RESOURCES, INCLUDING ANY OF THE FOLLOWING: 24 (A) PARK LANDS. 25 (B) PRESERVES. 26 (C) OTHER PUBLIC LANDS. 00214'97 * 22 1 (D) AREAS OF RECOGNIZED SCENIC, RECREATIONAL, AGRICULTURAL, 2 ARCHEOLOGICAL, OR HISTORICAL VALUE. 3 (D) THE PROJECT WILL CAUSE SIGNIFICANT DISPLACEMENT OF 4 POPULATION. 5 (E) THE PROJECT WILL DIRECTLY OR INDIRECTLY, SUCH AS THROUGH 6 INDUCED DEVELOPMENT, HAVE SIGNIFICANT ADVERSE EFFECT UPON ANY OF 7 THE FOLLOWING: 8 (i) LOCAL AMBIENT AIR QUALITY. 9 (ii) LOCAL NOISE LEVELS. 10 (iii) SURFACE WATER AND GROUNDWATER QUANTITY OR QUALITY. 11 (iv) SHELLFISH. 12 (v) FISH. 13 (vi) WILDLIFE. 14 (vii) WILDLIFE NATURAL HABITATS. 15 (F) THE PROJECT WILL GENERATE SIGNIFICANT PUBLIC 16 CONTROVERSY. 17 (9) BASED ON THE ENVIRONMENTAL IMPACT STATEMENT, A RECORD OF 18 DECISION SUMMARIZING THE FINDINGS OF THE ENVIRONMENTAL IMPACT 19 STATEMENT SHALL BE ISSUED IDENTIFYING THOSE CONDITIONS UNDER 20 WHICH THE PROJECT CAN PROCEED AND MAINTAIN COMPLIANCE WITH THE 21 NATIONAL ENVIRONMENTAL POLICY ACT OF 1969, PUBLIC LAW 91-190, 42 22 U.S.C. 4321, 4331 TO 4335, AND 4341 TO 4347. 23 (10) IF 5 OR MORE YEARS HAVE ELAPSED SINCE A DETERMINATION 24 OF COMPLIANCE WITH NATIONAL ENVIRONMENTAL POLICY ACT, OR IF SIG- 25 NIFICANT CHANGES IN THE PROJECT HAVE TAKEN PLACE, THE DEPARTMENT 26 SHALL REEVALUATE THE PROJECT FOR COMPLIANCE WITH THE NATIONAL 00214'97 * 23 1 ENVIRONMENTAL POLICY ACT REQUIREMENTS. THE DEPARTMENT MAY DO ANY 2 OF THE FOLLOWING: 3 (A) REAFFIRM THE ORIGINAL FINDING OF NO SIGNIFICANT IMPACT 4 OR THE RECORD OF DECISION THROUGH THE ISSUANCE OF A PUBLIC NOTICE 5 OR STATEMENT OF FINDING. 6 (B) ISSUE AN AMENDMENT TO A FINDING OF NO SIGNIFICANT IMPACT 7 OR REVOKE A FINDING OF NO SIGNIFICANT IMPACT